Next Wave Portfolio
Zuri-Invest Next Wave Portfolio is focused on Dynamic Multi-Thematic Investing. Invest together with Us.
NEXT WAVE PORTFOLIO STRATEGY
Overall Portfolio Strategy
The investment objective of the portfolio is to achieve long-term capital growth by investing globally in public equities with a dynamic multi-thematic approach. The Strategy focuses on identifying long-term structural trends and themes or specific industries benefitting from a strong cyclical momentum.
Unique Stock Picking Approach
The Next Wave Stock Picking Strategy has a clear process. We identify the most attractive investment themes, pick the best stocks benefitting from these themes and properly time the investments taking valuation, macro drivers, momentum and investor positioning into account. The portfolio risk is mitigated through a diversified approach.
The investment universe consists of stocks which fit one or more of the following criteria:
- Undiscovered
- Undervalued/Misunderstood
- Controverse
Portfolio Manager Expertise
M&A/Corporate Finance at Credit Suisse First Boston and Ernst & Young with a focus on industry and company analysis, due diligence and valuation in various sectors.
Portfolio Management at Lombard Odier with a focus on thematic investing and stock picking in the global technology sector.
Institutional Equity Sales at Merrill Lynch and RBC Capital Markets covering asset managers and private banks in Switzerland, Germany and Austria, most of which with a thematic investment angle, highlighting research and investment ideas.
Zuri-Invest Network
Strong network on the buy and sell side provides good access to research and investment ideas and to stay up to date on investment trends as well as market positioning.
COMPARISON: NEXT WAVE PORTFOLIO vs TRADITIONAL THEMATIC FUNDS
Static Single-Thematic: Traditional funds focus on a specific theme which they keep unchanged throughout the life of the product.
Dynamic Multi-Thematic: Next Wave focuses on the best 8-12 themes and with its constant review process has the flexibility to change these themes depending on macro developments, change of momentum or relative valuation, just to name a few.
Restrictive Investment Universe: Given the size and ESG restrictions of some thematic funds the investment universe is constrained by market cap, liquidity, and narrow parameters as well as regional criteria.
Flexible Investment Universe: Next Wave has no restrictions whatsoever in defining its investment universe and can pick the most attractive themes and best stocks at any given time.
Bottom-Up Approach: Most thematic funds are highly specialized and investment teams spend most of their time and resources to identify the best stocks within their investment universe based on fundamental analysis.
Top Down Approach: While fundamental company specific considerations are important, Next Wave is convinced that “a rising tide lifts all boats”. Therefore the key focus of the fund is to identify the right themes and to properly time the investments.
Slow Response Time: Most thematic funds are run by larger asset managers which given their size, investment committee processes and other internal admin requirements often have slower response time to market changes.
Fast Response Time: Next Wave Portfolio is set up in a way that it can act very fast to market and thematic changes.
Incentives focused on AuM: While thematic portfolio managers’ compensation is also impacted by their performance, for many asset managers the key profit driver is AuM growth. Not surprisingly many asset management firms ask their portfolio managers to assist in sales presentations which can draw substantial time and resources.
Incentives based on Performance: Key compensation driver for the Zuri-Invest Portfolio Management Team is achieving a solid performance as they are co-investors in their portfolios. Apart from the initial ramp up phase of the AMC the portfolio manager will focus on performance rather than AuM gathering.
INVESTMENT PROCESS – EQUITY SELECTION
PRODUCT STRUCTURE - DAILY PRICING, LIQUIDITY
PRODUCT DOMICILE: Switzerland
PRODUCT TYPE: Actively Managed Certificate
PRODUCT CURRENCY: CHF
DENOMINATION: 1 Unit
ISIN NUMBER: CH0587418796
MANAGEMENT FEE: 1.2 % p.a.
ADMINISTRATION FEE: 0.3 % p.a.
PERFORMANCE FEE: 10 % with High Watermark
TRADING: Daily secondary market
STRATEGY MANAGER: Zuri-Invest AG, Zurich
PAYING AGENT: ISP Securities AG
CUSTODIAN: Interactive Brokers (U.K.) Ltd.
PRODUCT VALUATION
Quoc Phong Dang, Head of Thematic
Zuri-Invest AG
Klausstrasse 19
8008 Zurich
Switzerland
Phone: +41 (0)44 225 41 60
Fax: +41 (0)44 225 41 62
Email: quocphong.dang@zuri-invest.ch
Website: www.zuri-invest.ch